Eye's future to be secured

The future of the London Eye is on the brink of being secured on the fifth anniversary of its public opening.

After three years of negotiations a deal is close on restructuring the attraction's crippling ?130million debt.

Despite a healthy operating profit the Eye last year made an overall loss of ?18million because of debt interest payments running at 25 per cent.

The debt to British Airways, which put ?48 million towards the ?70 million cost of the project, cost the London Eye Company ?29 million last year but the Standard has learned of a breakthrough in the refinancing talks.

A new investor is expected to take over BA's shareholding, write off much of the debt and refinance the rest at a much lower interest rate.

The Eye's co-designer David Marks, who owns a third of the company, said: "We have presented an elegant solution which will leave the London Eye Company in charge of the attraction. I am hopeful a solution will be agreed."

With 18 million visitors, more than 40 awards, and 153 couples married in its pods, the Eye is universally acknowledged as a success. Tomorrow the attraction celebrates the fifth anniversary of its public opening by handing out champagne to visitors.

It is a landmark that looked unlikely when Mr Marks and wife Julia Barfield sketched plans for a giant Ferris wheel 12 years ago. The drawings were designed to win a competition whose judges finally dismissed all the entries as rubbish. However, the couple campaigned solidly, recruited the Standard and raised the ?70 million needed to build the Eye without any public funds.

Even then they faced scepticism and when Lambeth council granted planning permission they reserved the right to pull it down after five years. Its position on the South Bank is now guaranteed until 2027. Now the UK's top paid-for attraction, the Eye is viewed by Mr Marks, a father-of-three, as his "fourth baby". He said: "We really do burst with pride at our part in bringing the wheel to reality."